Trump Administration Is Ready to Carry “The Burden of Leadership” in the WTO

Abstract

Trump’s administration is configured negatively to the World Trade Organization (WTO), which it considered ineffective and is allegedly used by some United States trading partners to achieve trade and political objectives contrary to American interests. Some American claims to the WTO, at least partially, are shared by other members of the organization. The process of improving international trade rules is clearly not keeping up with the pace of change in the world. Signs of the WTO erosion are evident in advocating increased use of trade policy instruments outside the organization under the pretext of protecting national interests and national security, the introduction of new trade sanctions and other restrictive measures, the crisis of the system for the settlement of trade disputes. The absence of multilaterally agreed arrangements on the reform of the WTO encourages the Trump Administration to act unilaterally. The United States stated their right to apply the restrictive measures against the WTO members under the pretext of protecting national security, insisting on the need for a selective approach to decisions taken not in their favor, probe to eradicate undesirable for this country most favored nation trade regime (MFN), and accentuate the flaws of multilateralism in trade negotiations. Against this backdrop, the Trump Administration announced its willingness “to lead the international efforts” for the reformatting of the WTO with a view to restoring its sole political leadership in the organization. However, aggressive, reckless and uncoordinated with the partners of the United States actions untie hands to other countries to protect their own interests, both within the legal framework of the WTO and beyond, making the risks of returning to the priority of force factor on the principle of “everyone for himself ”. The future of the multilateral trading system, the scope and depth of these reforms will largely be determined by the coherence or uncoordinated actions of key players - the United States, China and the EU. While the contribution of other countries, including Russia, could also be significant. The priorities will be the prevention of further escalation of trade conflicts and preparation of the conditions for a new round of trade negotiations.